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World Business Academy
Rekindling the Human Spirit in Business
Volume 15, Issue 5
PERSPECTIVES
December 19, 2001
Editor\u2019s note: In this year-end piece, author Michel Saloff-Coste notes that we exist in a period of deep

change \u2013 the end of an age \u2013 and "must find a fresh example of the company." To do that, he presents three themes: In-depth characteristics of the change that we are living through; Adaptation period required for any company seeking to adapt; and the Process of change to be implemented to modernize the company.

Saloff-Coste writes that the discovery and management of one\u2019s "genius and the genius of one\u2019s coworkers" require getting past the automatic reaction that we have all incorporated in ourselves of making being different the scapegoat of our woes. He identifies four steps to create the right atmosphere and explicitly explains what holds individuals back in their discovery of their genius. He also identifies four steps, a holistic system of management, that gives value and anchors a company in its genius. Beyond these steps, his process aims at activating \u2013 throughout the company \u2013 circulation of creativity and communication, which makes the whole company become a laboratory of the future where new, living processes are constantly being invented.

Strategies of the Future
By Michel Saloff-Coste
(Read about Mr. Saloff-Coste at the end of this piece)
Introduction

We are in a period of deep change, but paradoxically, at the same time, we seem to have forgotten all our capacity for in-depth understanding of the social and business revolution we are undergoing. In the face of rapid modifications, we often have a tendency to focus on the short-term and thereby get ourselves stuck in the quicksand of fashions.

While many roads of thought are opened by people trying to retain a detached attitude regarding the dimension of ever more tumultuous phenomena, two ways of reading the situation intersect. There is the deeper, global one involving the evolution of societies and human activities. Then there is the one entailing evolution of businesses, which gives the appearance of being more concrete in a world that has become essentially commercial.

At a time when companies are collapsing while others are witnessing performances never seen throughout the entire industrial era, will we not have to reverse the reflexes that we have built up over hundreds of years? If so, we might then find it easier to understand the immense capabilities offered by the new post- industrial information era, the creation-communication era1 where the role of the individual once again becomes the centerpiece. We will have to explore new cultural, managerial and systemic paths, while simultaneously keeping in mind that the three periods preceding us (hunting and gathering, planting and rearing, and industry and trade) continue to impregnate our cultures and our types of organization.

It is in relation to this new illumination \u2013 that of the end of an age \u2013 that we must find a fresh example of the company. Companies can no longer take pride in themselves for fitting into a fully controllable, or much less foreseeable, future. Nevertheless, no matter how unforeseeable the future is, it will partly be the result of what people, individually or working in teams of various types, will imagine and want to create.

The era of uncertainty
These days, no one can pretend to "earn in the context of uncertainty" without first acknowledging that this
action basically consists of managing more complexity and of going beyond the approach which three
1 See Michel Saloff-Coste, "Le Management du troisi\u00e8me mill\u00e9naire", (Management in the third millenium), op. cit.
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centuries of Cartesian thinking left us. Managing complexity also means knowing that there is no longer a single reality, but a complex fabric that is both virtual and real, and that one can only effectively comprehend through a vision devoted to global thinking. When we talk about learning companies, in fact, we implicitly understand that there are "unlearning" companies \u2014 meaning one has to "unlearn" old reflexes in order to really work to the benefit of people and their skills. Let peoples\u2019 imagination take over. That is the challenge being offered to you: it is up to them, up to us, to remain the masters of what modern technology can do.

A new vision is indispensable

It is in relation to the new perspectives offered by this switchover to an information era \u2014 where informed, creative and communicative individuals can finally let their own genius take its course \u2014 that new liberating visions will prove essential. It is these new visions that will give all their meaning and weight to individual and group projects, in the framework of organizational and societal undertakings, taken in the global sense.

New game rules

Some companies \u2013 the fourth type2 \u2013 while there are still too few of them, understood that the rules of the game changed, rules that directly concern individuals and their relations with their equals in their "producer" activities, rules that we will break down into four categories: culture, management, systems and structures. These new game rules bring about a new type of civilization, one that is radically different from the ones we have known up until now.

At the time of the industrial takeoff, the pioneers of the new age, that is the age of industry and trade, knew extraordinary opportunities. Today we also have exceptional opportunities for development, if we know how to anticipate things, while at the same time remembering that the real, concrete future never corresponds to a simple extrapolation of the past. What is important to discern is the heavy tendencies, the general outline of the emerging era: the post-industrial era. It is the general characteristics, the invariants of this era, that we must highlight by differentiating them from characteristics of previous eras.

From meta-strategy to operational management
In this article, three main themes will be presented, going from meta-strategy to practice, and including

strategic diagnostics:
I. in-depth characteristics of the change that we are living through
II. adaptation period required for any company seeking to adapt
III. process of change to be implemented to modernize the company

I. IN-DEPTH CHARACTERISTICS OF CURRENT CHANGE

The crisis that we are going through is not cyclical, but structural. In this environment, projections made by extrapolating tendencies are not of much use, since they only extend the "currents" of the moment, so it is the breaking away that need to be examined.

Nevertheless, now more than ever, individuals, teams, companies and society in general need points of
reference, anchors floating in the vastness of the ocean, often pulled apart by uncertainty.

In periods when action tends to lose its frame of reference and become insignificant, social-historical reflection can put the change that is taking place in a different light. This new perspective gives an effective meaning back to the action.

Above and beyond the formal level of appearances, it is in fact at the level of meaning that the full contribution of the grid we propose for decoding the evolution of human activities will be appreciated. The objective of this "macroscope" is to shed light on our current evolutionary position and fundamental breaks that we can expect, by giving a few "leads" for answering the following three questions:

How did we get to the current situation? What are the characteristics of our age? What are the coming tendencies?

2 See B. Lemaire, "Vers l'entreprise du quatri\u00e8me type" (toward a company of the fourth type), Expansion Management
Review, March 1994.
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Breaks and cultures
In its evolution, humanity has witnessed a few major breaks. Are we currently living through another one, or
are we simply witnessing the full development of tendencies existing for a long time now?

It is difficult to answer these questions because we all see things from our own background and cultural point of view. Cultures have a great capacity to mutually ignore each other and discredit each other. Because cultures are grids for decoding the world, they are the very origin of our relationship with reality. The question of knowing what major steps humanity has gone through represents another question. What culture should we put ourselves in? What is a beginning for some cultures and an end for others?

The concept of dominant activity

One way to approach the major steps in human evolution is to construct a breakdown based on the modifications recorded in dominant activity. The term "dominant activity" means the activity that most of humanity carries out at a given time.

For nearly three million years, humans' dominant activities were hunting and gathering. Cultivation and
rearing then took over for 30,000 years, and 300 years ago, gave way to industry and trade.

Finally, today, creation and communication \u2013 fields in which a little more than 50% of the active populations in the most advanced countries work \u2013 are gaining ground. In the United States, actual production activities already only represent 1/6th of jobs.

When an activity engages most of humans' forces at a given time, it becomes the foundation of the values that drive the society. The values of a hunter-gatherer, who has to move around quickly in order to follow seasons and animals, are therefore different from the values of a planter and blender, who has to protect his or her territory and stay close to it at all times.

Every time humanity has changed dominant activities, tools and ways of thinking, its way of perceiving,
organizing itself, exchanging and communicating also underwent change.
Thinking about history helps us build a concrete tool that can shed light on the present. This tool is a "grid"
that offers a clear, summary view of the evolution of history and current change.
Characteristic domains of each age
In order to analyze the characteristics of each step and the evolution of culture and corresponding values, we
defined seven characteristic domains:

1. Tool: evolution of tools, as exteriorizations and extensions of our organic functions
2. Power: evolution of the factor determining material and social power
3. Exchange: evolution in ways used to exchange goods
4. Thought: evolution in the way of thinking and understanding reality
5. Communication: evolution in the way of communicating
6. Organization:evolution in the way of organizing things within society
7. History: evolution in the way people comprehend time and history

By intersecting dominant activities and characteristic domains, we obtain a grid made up of 28 elementary meshes. It is made up of seven vertical columns, corresponding to the characteristic domains, and of four horizontal columns, corresponding to the dominant activities.

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